Asian Citigroup unit fined US$45 million by Hong Kong’s SFC for misleading clients over 11-year period

Name: Why a big, bad American banker had to make a humble apology to China
Uploaded: 2022-01-28T12:27:19.000Z
Duration: 4 min 7 s
Description: Why a big, bad American banker had to make a humble apology to China

The markets watchdog fined Citigroup Global Markets Asia HK$348.25 million for ‘pervasive dishonest behaviour’ on its various trading desks

The heavy fine is intended to send ‘a strong message to deter other market participants from permitting similar failures to occur’

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The SFC described the Citi unit’s behaviour as ‘inconsistent with the fundamental principles of being honest with clients and treating them fairly.’ Photo: Bloomberg

Enoch Yiu

Published: 8:27pm, 28 Jan 2022

Hong Kong’s securities watchdog has fined a unit of the American banking giant Citigroup HK$348.25 million (US$45 million) for “pervasive dishonest behaviour” across its various trading desks over an 11 year-period.

The Securities and Futures Commission reprimanded and imposed the fine on Citigroup Global Markets Asia (CGMAL) for making misrepresentations to institutional clients between 2008 and 2018.

“The SFC considers that such pervasive dishonest behaviour would not have continued but for serious lapses and deficiencies in [the bank’s] internal controls, compliance function and management oversight,” it said.

The heavy fine is intended to send “a strong message to the industry to deter other market participants from permitting similar failures to occur.”

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Why a big, bad American banker had to make a humble apology to China

The watchdog will also commence disciplinary proceedings against several senior executives. It did not name them.